Rising economic boom through tech

India's economy, fuelled by tech growth and policy reforms, surged to USD 3.6 trillion, with a booming start-up ecosystem and rapid e-commerce expansion

- JAIDEEP GHOSH

India's economic journey from USD 300 billion in 1993 to a staggering USD 3.6 trillion behemoth today is a testament to its resilience and policy reforms. The past decade, in particular, has witnessed a surge in technology-led sectors propelled by government initiatives. Effective implementation of ongoing and new reforms is crucial to sustain this momentum and realise the vision of a developed India by 2047.

Technology is emerging as a key differentiator in determining economic prosperity. The Government of India has played a crucial role in fostering the growth and competitiveness of technology and services sectors by creating an enabling environment.

So, which key sectors rely on technology, and how are government policy reforms driving sustained growth across India? The country's Economic Survey 2023-2024, published by the Ministry of Finance, Government of India, answers many of these questions.

RAPID GROWTH OF TECHNOLOGY-LED SECTORS

Over the past decade, information technology and related services have become increasingly significant, with their share of total GVA nearly doubling to 5.9% in FY23. The pandemic expedited the growth and acceptance of technology-driven solutions.

IT and IT-enabled services have contributed to India's external balance through export earnings. This includes exporting IT services and Global Capability Centres (GCCs). The GCCs in India have grown significantly, from over 1,000 centres in FY15 to over 1,580 by FY23. Total talent employed in Indian GCCs exceeded 1.66 million.